Up to 300,000 smallholder farmers in Northern Uganda are set to benefit from a $2 million technical assistance programme aimed at raising cotton yields, strengthening value chains and increasing rural incomes in a region where the crop is a key source of livelihoods.
The funds, approved on 9 December by the Board of Directors of the African Development Bank Group, will support the Cotton Value Chain Project in Northern Uganda. The programme is financed by the Fund for African Private Sector Assistance, a Bank-hosted multi-donor trust fund that provides grants for technical support to boost Africa’s private sector.
It will be implemented by the Ministry of Agriculture, Animal Industry and Fisheries, with a focus on rebuilding rural economies and improving household incomes.
Cotton is central to Northern Uganda’s local economies, yet many farmers face low productivity due to limited access to quality inputs, weak market linkages and outdated processing facilities. The project seeks to address these challenges by improving performance across the entire value chain, from farm production to processing and marketing.
Targeted investments will help farmers increase yields through improved seed varieties, better farming practices and expanded access to extension services. Cotton mills and cooperatives will receive support to modernise equipment and improve quality standards, while stronger links between farmers, processors and buyers are expected to stabilise prices and raise earnings at household level.
The initiative is expected to generate wide-ranging benefits for local communities. In addition to the 300,000 smallholder farmers, more than one million people across Northern Uganda—mainly cotton growers, women, youth and workers along the processing and trading value chain—are projected to benefit.
Dorsaf Zangar-Labidi, AfDB Manager for Industrial Development, Trade and Investment Climate Division, highlighted the project’s people-centred approach. “This project will bring new opportunities to farming communities and thereby restoring dignity and improving livelihoods,” she said. “As a significant cash crop, investing in cotton means we are investing in jobs, incomes, climate resilience and even food security.”
Higher farm incomes are expected to allow families to invest more in education and healthcare, while new employment opportunities along the cotton value chain should encourage greater participation by youth and women. Strengthened farmer organisations will also give producers a stronger voice and better access to finance and markets.
Sustainability is a key focus of the programme. Training in climate-smart agricultural practices will help farmers cope with weather shocks and protect soil health.
Overall, the project is expected to deliver higher cotton productivity, improved lint quality, increased processing capacity and stronger private sector participation. By expanding value addition within Uganda, the initiative will help retain more value in local economies and reduce export losses.
“Over time, the gains expected from this project will contribute to poverty reduction, economic resilience and regional stability in the region,” Zangar-Labidi said.
